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Following are different algebraic expressions of the production function. Decide whether each one has constant, increasing, or decreasing returns to scale.n a. Q = 75L0.25
Following are different algebraic expressions of the production function. Decide whether each one has constant, increasing, or decreasing returns to scale.n
a. Q = 75L0.25 K0.75n
b. Q = 75A0.15 B0.40 C0.45n
c. Q =75L0.60 K0.70n
d. Q = 100 + 50L + 50Kn
e. Q = 50L + 50AT + 50 LKn
f. Q = 50L2 + 50 K2n
g. Based on the answers for the preceding equations, can you make any generalizations about the functional form of a production equation, the relative magnitudes of the coefficients, and the nature of the returns to scale? Explain.
a. Q = 75L0.25 K0.75n
b. Q = 75A0.15 B0.40 C0.45n
c. Q =75L0.60 K0.70n
d. Q = 100 + 50L + 50Kn
e. Q = 50L + 50AT + 50 LKn
f. Q = 50L2 + 50 K2n
g. Based on the answers for the preceding equations, can you make any generalizations about the functional form of a production equation, the relative magnitudes of the coefficients, and the nature of the returns to scale? Explain.
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Introduction to Governmental and Not for Profit Accounting
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton
7th edition
9780132776073, 132776014, 978-0132776011
